A foreign company which has no branches or offices in India win a contract to do some dredging work awarded by a PSU in india. The foreign company assign the complete rights of the contract to an indian company. 1) Can the indian company put bills to the PSU and receive payments? OR the PSU pay the foreign company and then Indian Company gets the payment from the foreighn company? 2) If Indian company can directly recieve payments from PSU, should the PSU withhold 40% TDS considering that the original contract was awarded to a foreign company?
CAclubindia
